Irish milk production to continue on upward trajectory

Published 7 December 16

Irish milk production in 2017 is forecast to increase by 6% to more than 7bn litres, according to Teagasc’s (the Irish Agriculture and Food Development Authority) latest Outlook. This is on top of an estimated 5% increase in 2016.

Teagasc forecasts the average milk price in Ireland to rise 20% in 2017, to 32.2 cents per litre. This is currently equivalent to around 28ppl*. Despite lower or stable input costs, Teagasc expects higher input usage, leading to a marginal increase in production costs. Net margins on a per litre basis are forecasted to increase by 73% relative to 2016 to an average of 12.4 cents per litre (approximately 11ppl*).

Overall, it appears that Ireland’s ability to continue to expand relies on its milk producers weathering the storm over the last two years. As a result, the industry appears to be in a position to respond to a positive change in market conditions, should they occur as Teagasc is predicting.